China rejects latest US steel measures

Source: www.chinamining.org         Citation: Global Times   Date: May 19, 2016

`Unjust` moves don’t comply with WTO rules: MOFCOM

A worker oversees the production of cold-rolled flat steel in a factory in Dalian, Northeast China`s Liaoning Province. Photo: IC

China on Wednesday expressed strong dissatisfaction over a decision by the US to launch anti-dumping and anti-subsidy probes into Chinese cold-rolled steel imports and the country`s refusal to offer Chinese State-owned enterprises differentiated tax rates, calling the practices "unjust" and contrary to WTO rules.              

Such practices have "seriously" damaged the ability of Chinese firms to defend themselves and allowed the US to impose "abnormally high tariff rates" on them, the Ministry of Commerce (MOFCOM) said on Wednesday. The ministry urged the US to rectify the situation "promptly."   

MOFCOM`s comments came after the US Commerce Department decided Tuesday to levy import tariffs of 522 percent on Chinese cold-rolled steel, alleging that these products were sold in the US market below cost and with unfair subsidies.   

The US upheld its preliminary anti-dumping duties of 265.79 percent for Chinese cold-rolled steel imports, but increased the rate to 256.44 percent from 227.29 percent, Reuters reported on Wednesday. The original complaint was filed in July 2015 by US producers.   

Cold-rolled steel is primarily used in automotive body panels, appliances, shipping containers and construction.  

Chinese companies affected by the duties include Baosteel Group, Angang Group Hong Kong Holdings, and Benxi Iron and Steel (Group) Special Steel Co, according to Reuters.

In a statement e-mailed to the Global Times on Wednesday, Baosteel Group said that its operations are completely market-oriented and that the US ruling is unfair.

"The decision by the US government offers almost no room for Chinese cold-rolled flat steel exports in the US market because the duties will increase by over five-fold the import prices for the steel products," Wang Guoqing, research director at Beijing Lange Steel Information Research Center, told the Global Times on Wednesday.

The US is increasingly taking a protectionist stance over trade with China and trying to shut down its market to Chinese steel products, Wang noted, adding that the latest measures are quite "extreme."

The US and the EU are also reluctant to grant China market economy status (MES) because doing so would make it harder for them to impose anti-dumping duties on Chinese imports, she said.

Since 2015, the US has launched several trade remedy investigations into steel products from countries and regions including China, Brazil, India and South Korea, and is trying to shift the troubles in its own steel sector to overseas markets, said MOFCOM.

On April 26, US Steel Corp filed a trade complaint against big Chinese steel makers and distributors, trying to bar allegedly unfairly traded Chinese products from the US market.

China believes that the US` actions against steel imports from other countries runs contrary to the WTO principles of free trade and globalization, MOFCOM said.

China not to blame

There has been a rising number of anti-dumping measures against Chinese steel exports recently, amid overcapacity in the global market.

The troubles in the world steel sector have not only been caused by Chinese exports, experts said, noting that factors like the sluggish global economy and weak demand also matter.

Joint efforts are needed to address the issue and taking protectionist measures will not help tackle the challenges faced by the global markets, experts said, noting that while China does face overcapacity domestically, it is taking measures to deal with it.

The State Council, China`s cabinet, said Wednesday that China will cut its steel capacity by about 10 percent in the next two years.

The country is planning to transfer 10 million tons of steel capacity to Brazil and the capacity that will be transferred in the first phase will reach 3 million tons, domestic news portal jiemian.com reported Monday, citing Zhang Shengsheng, general manager of an investment company.

"In a bid to further reduce overcapacity, standards for domestic steel producers should be unified, including energy consumption, production technology, product quality and environmental protection," Wu Wenzhang, general manager of Shanghai-based consulting firm Steelhome, told the Global Times on Wednesday.

Due to the US` actions, Chinese steel producers will continue to expand their presence in other countries and regions in Southeast Asia, South America and Africa in the future, Wang said, noting that "domestic steel firms should not be in a hurry but should take steps gradually to seek growth there."  

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2016 will be held at Meijiang Convention and Exhibition Center in Tianjin on September 22nd -25th, 2016. We invite you to join the event and to celebrate the 18th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2016, please visit: www.chinaminingtj.org.

China earmarks funds to help reduce overcapacity

Source: www.chinamining.org         Citation: Xinhua       Date: May 19, 2016

China`s Ministry of Finance said Wednesday it has earmarked a special fund of 100 billion yuan (15.33 billion US dollars) to subsidize local governments and state-owned enterprises (SOEs) in reducing steel and coal overcapacity.

The ministry said in a statement that 80 percent of the funds will be distributed to local governments and centrally administered SOEs based on their respective capacity reduction assignments, as well as the number of laid-off workers that must be resettled and the difficulty of doing so. 

The remainder will be allocated based on how well local governments and SOEs fulfill their assignments, the statement said.  

The ministry added that it will continue to implement preferential taxation policies, including tax refunds for steel exports and tax preferences for urban land use by coal miners.  

To encourage the development and use of coal bed gas between 2016 and 2020, the central finance subsidy for coal bed gas will be raised from 0.2 yuan to 0.3 yuan per cubic meter, the statement said.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2016 will be held at Meijiang Convention and Exhibition Center in Tianjin on September 22nd -25th, 2016. We invite you to join the event and to celebrate the 18th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2016, please visit: www.chinaminingtj.org.

China`s investment boosts Peru`s GDP: Peruvian PM

Source: www.chinamining.org     Citation: Xinhua    Date: May 06, 2016

Anartist performs the Lion Dance to celebrate the Chinese lunar New Year  in Chinatown in Lima, Peru, Feb 6, 2016. [Xinhua/Luis Camacho]

LIMA - China`s current investment of $22.7 billion in Peru has boosted the Latin American country`s gross domestic product (GDP), Peruvian Prime Minister Pedro Cateriano said.  

"Chinese investment in Peru has considerably increased our mining production," Cateriano said in a recent interview with Xinhua, citing the Las Bambas and Toromocho copper mine projects as two examples.  

"The Las Bambas copper mine, which may be one of the largest such projects in the world, has seen an investment of over $10 billion. The Toromocho project has also seen much success, with an announced expansion costing $1.5 billion," said Cateriano.  

"This has made China the foremost investor in our mining sector," said Cateriano.  

Besides the two cooper mine projects, a Chinese company is currently exploiting iron deposits in Peru`s coastal region of Ica. Mining has become an important pillar of China-Peru trade, which reached $15.5 billion in 2015, despite the international financial crisis. 

Bilateral ties between China and Peru are going very well, said Cateriano, adding that a joint commission by the two countries to examine a number of matters is progressing apace.  

The exchange of visits by leaders of the two countries have contributed to bilateral relations, "leading to the creation of a mechanism of permanent dialogue to evaluate political, diplomatic, economic and cultural matters," he said.  

Cateriano emphasized that China has "not only benefited Peru but all of Latin America. The Chinese economy is so strong that it has an affect on the entire world."  

"In my experience as Defense Minister and now as Prime Minister, I have seen (cooperation in) the areas of politics, diplomacy, economy, trade and culture all make significant progress," he said.  

"Peru must be grateful for the role that China plays in the economic sphere. However, it is true that some fear a slowdown in China`s economy will have a negative impact on all sides," he added.  

In terms of future progress, the prime minister said that "there are other fields where I would like to see improved cooperation, such as in the transfer of technology," said Cateriano.  

"We have progressed greatly in this area in recent years but I would like China to not just sell us equipment but manufacture them jointly in Peru," he said. 

On the upcoming summit of the Asia-Pacific Economic Cooperation (APEC) forum, which is to take place in Lima in November, Cateriano said that "the government of President Humala has paid great attention to the importance of APEC and our policies have followed the priorities set within the bloc."

"Our administration will end its mandate on July 28 and we are seeking to ensure this international meeting will be successful, which most Peruvians also want," the prime minister said.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2016 will be held at Meijiang Convention and Exhibition Center in Tianjin on September 22nd -25th, 2016. We invite you to join the event and to celebrate the 18th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2016, please visit: www.chinaminingtj.org.

China to simplify approval process for gold imports, exports

Source: www.chinamining.org     Citation: Xinhua   Date: May 05, 2016

China will test a new policy that aims to make the import and export of gold a lot easier, according to a statement jointly issued by the People`s Bank of China and the General Administration of Customs.

The new policy, set to be tested from June 1, will allow gold companies to clear customs up to 12 times with one permit, the statement said.

Previously, gold companies had to apply for a permit for every import or export consignment.

The new measure will simplify the approval procedures and improve the gold trade environment, according to the statement.

The policy will be tested in Beijing, Shanghai, Guangzhou, Nanjing, Qingdao and Shenzhen.

China remains one of the world`s biggest consumers of gold, with total consumption amounting 985.9 tonnes last year. Gold output stood at 450.05 tons in 2015, according to data from the China Gold Association.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2016 will be held at Meijiang Convention and Exhibition Center in Tianjin on September 22nd -25th, 2016. We invite you to join the event and to celebrate the 18th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2016, please visit: www.chinaminingtj.org.

News Analysis: China`s industry streamlining faces steel-price test

Source: www.chinamining.org     Citation: Xinhua   Date: May 04, 2016

Tangshan Songting Iron and Steel Co., a steel mill in China`s largest steel-producing city Tangshan, re-opened in April after five months laying idle.                

The company, which temporarily shutdown in November over mounting debt, is looking to restart production soon, media outlets quoted an unnamed industrial insider as saying.  

Similarly, mills in other steel-producing regions, including Tianjin and Shanxi, are resuming operation, despite a move by the government to downsize the steel sector.  

China`s steel sector had experienced years of plunging prices and factory shutdowns due to the sluggish economy, however, in March demand picked up thanks to infrastructure and property projects.  

Steel product prices have increased more than 60 percent in the year to date. Hot-rolled steel coils, for example, increased to around 3,200 yuan (around 500 U.S. dollars) per tonne from less than 2,000 yuan at the beginning of the year. 

Encouraged by the upward pricing trend, many steel mills are resuming production.  

National daily crude steel output amounted 2.28 million tonnes in March, up 12.9 percent from the first two months -- nearing the record 2.31 million tonnes seen in June 2014. The purchasing managers` index that tracks the iron and steel sector increased to 57.3 in April, the first time in two years that the index has climbed above 50, the level that separates expansion from contraction. 

China`s steel industry has been plagued by overcapacity for years. It has been felt even more in the past two years as demand for steel has dropped.  

Steel producers experienced their worst year in 2015, with combined losses in main business soaring 24-fold from 2014 to over 100 billion yuan.  

Despite the warming market, however, some are warning that it is too early to celebrate, just yet. There are concerns over whether the construction-driven price spike will impede the government plans for the steel sector.  

The return of steel companies adds pressure to the streamlining of the sector, thus, policies need to be better implemented, said Ma Li, an analyst with Lange Steel, a steel information website.  

Analysts expect the reopened factories will push crude steel output to a new high in April, but the government has vowed to control production. North China`s Hebei Province has asked officials to crack down on new mill projects and close those that failed to secure re-opening approval.  

On the other hand, some are downplaying the impact from surging steel prices, describing the rebound as "no more than a blip."  

The rapid price spikes are not sustainable as they are largely driven by a seasonal pick-up in fixed-asset investment and exacerbated by speculation in the steel futures market, according to Fitch Ratings.  

The rating agency expects steel prices will be under significant pressure in the near term as domestic demand for steel has generally remained flat.  

Vice president of China Iron and Steel Industry Association Qu Xiuli, said that although steel production is likely to hit new high in April, the rise in supply will help rein in the rampant market.  

Some industry insiders argue that consolidation of the sector will be a long process and unlikely to be disturbed by short-term changes.  

"It is like a `protracted war` we cannot win in single combat," said Zou Jixin, vice president of Wuhan Iron and Steel (Group) Co. To cut excess capacity, debt-ridden and inefficient steel producers need to make big changes, Zou said.  

Liu Weiming, financial analyst with CITIC Bank, went further and said the price surge may even help steel mills; "The price rebound will improve the solvency of steel companies and give them more room for restructuring."  

Moreover, price hikes are unlikely to change policymakers` resolve.  

China`s financial regulators in late April ordered banks to stop issuing loans to steel and coal enterprises that operate at a loss.  

The Ministry of Commerce said last week that it will work with more nations to address steel overcapacity.  

The government shut down outdated facilities with total production capacity of over 90 million tonnes in the past five years, and it plans to slash another 100 million to 150 million tonnes by 2020.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2016 will be held at Meijiang Convention and Exhibition Center in Tianjin on September 22nd -25th, 2016. We invite you to join the event and to celebrate the 18th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2016, please visit: www.chinaminingtj.org.

Chinese state-owned coal firm to make good on bond payment

Source: www.chinamining.org     Citation: Reuters  Date: April 13, 2016

A unit of state-owned ChinaCoal Group said on Tuesday it will pay off principal and interest on overdue commercial debt on Wednesday in full, without specifying the source of its funds.  

ChinaCoal Group Shanxi Huayu Energy Co Ltd failed to pay 637.7 million yuan ($98.76 million) in principal and interest on domestic short-term commercial debt maturing on April 6, one of a string of recent defaults among Chinese companies.  

"The company has overcome numerous difficulties, actively strived to raise capital from various channels, and now decided to pay off the debts in full on Wednesday," Shanxi Huayu said in a statement posted on the website of the Shanghai Clearing House.  

Shanxi Huayu`s case was the first domestic bond default by a company controlled by a state-owned coal mining group since 2012.  

Shanghai Pudong Development Bank is the underwriter for Shanxi Huayu`s commercial debt, the statement said.  

China`s bond market has witnessed an increasing number of defaults over the past year as the country`s economy slows and Beijing moved to slash capacity in traditional industries including steel and coal, and state-owned companies - once considered safe bets - have begun to show signs of stress.  

The National Development and Reform Commission (NDRC) ordered issuers to take stock of their ability to repay principal and interest and submit reports by April 15 every year, starting this month, according to three sources with direct knowledge of the notice and a copy seen by Reuters.  

On Monday, state-owned China Railway Materials Co Ltd suspended trade in 16.8 billion yuan worth of its debt instruments, citing operation difficulties and payment issues.  

Fitch Ratings said in a report this week that Shanxi Huayu`s default highlighted the very difficult situation that many Chinese coal mining companies face.  

Lower prices, weak demand and over-capacity have significantly weakened the balance sheet of not only smaller-scale companies such as Shanxi Huayu, but also major players such as Yanzhou Coal Mining Co Ltd and China Shenhua Energy Co Ltd, Fitch said.  

However, the domestic bond market has remained calm so far, with traders betting that more stimulus spending, policy easing and tax cuts will help issuers avoid default, and average bond yields have remained accommodative.

($1 = 6.4573 Chinese yuan)

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2016 will be held at Meijiang Convention and Exhibition Center in Tianjin on September 22nd -25th, 2016. We invite you to join the event and to celebrate the 18th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2016, please visit: www.chinaminingtj.org.

Britain and China must join to solve steel crisis, ambassador says

Source: www.chinamining.org         Citation: chinadaily.com.cn    Date: April 12, 2016

Chinese Ambassador to the UK Liu Xiaoming talks about the 13th Five-Year Plan at a recent interview on March 6, 2015. [Photo/ fmprc.gov.cn]

Chinese Ambassador to the UK, Liu Xiaoming, publishes an article on the Daily Telegraph on Monday calling for the two countries to join hands and solve the current steel crisis. The following is the full text of the writing.  

Recently, the UK`s steel industry has been dogged by news of closures or sell-offs, with thousands of jobs at risk.  

This is a sad story: the pioneer of the modern steel industry - once the world`s factory, churning out almost half of global steel production in the latter half of the 19th century - is shrinking and bogged down in difficulties.  

However, it is regrettable that some people in Britain blame China for what is happening in the British steel industry and accuse China of "dumping" steels in Britain and pricing local companies out of the steel market.  

Making China the "scapegoat" only misleads the public and contributes nothing to the solution of the problem.  

As Chinese Ambassador, I believe it is my duty to share with the British public what I see as the multiple reasons behind the sluggishness in Britain`s steel industry.  

First of all, the shrinking steel sector tallies with the general trend in advanced economies where traditional manufacturing has been replaced by a modern services and financial sector. Sheffield`s transformation from a steel-making city to a sport and education hub is a case in point.  

Second, in the post-financial crisis era, recovery stays weak and demand remains scarce in most of the economies. Steel overcapacity thus becomes an acute issue worldwide and steelmakers, wherever they are, face similar difficulties. The UK is not alone. Steel companies in Europe, China and beyond are all trapped in the same predicament.  

Third, the price of steel production, including energy, labour and environmental costs, is rather high here in the UK. In face of fierce global competition, British companies in general are less competitive and less profitable in the field of ordinary and low-end steel production.  

Steel imported from China, amounts of which are very limited, has little to do with the predicament of the UK`s steel industry. In both volume and value, steel from China makes up only a fraction of the UK`s total steel imports.  

In 2015, for example, of the UK`s 6.66m tons of imports, only 11pc, or 760,000 tons, were from China. If put in value, that was $457m, only 7.6pc of the $5.98bn total.  

Moreover, steel products from China are mostly low value-added, such as ordinary steel rods and plates, which Britain no longer makes and would have to import from other countries anyway.  

Therefore, imports from China have no impact upon the British steel market. On the contrary, by importing steels from China, the auto, machinery, construction and other British industries have effectively lowered their costs and increased their profit margin. And imports from China are not "dumping", as some claim. The Chinese steel manufacturers have followed market rules strictly when exporting to Britain.  

Like their British counterparts, steelmakers in China are also in difficulty.  

But unlike in Britain, the situation in China is even more serious and challenging. Over the past three years, China has reduced steel capacity by 90m tons. In 2015, for the first time in nearly 30 years, China`s crude steel production fell by 2.3pc year on year. In the coming five years, China is going to cut its crude steel capacity by 100m-150m tons. 

This new round of reductions will result in several million lay-offs and relocations of steelworkers, far outnumbering those in the UK.  

So, both China and the UK have huge challenges on our way ahead - to reform and revitalise our respective steel sectors, and to provide help and support to those workers who might lose their jobs.  

The Chinese and UK governments have maintained close contact on the steel issue. In late February, the China-UK Joint Economic and Trade Commission had a special discussion on this matter.  

Over the weekend, during Foreign Secretary Philip Hammond`s visit to China, the two governments had an in-depth exchange of views over the steel issue.  

Here in the UK, I have spoken on many occasions and shared China`s position with British people from different sectors of industry.  

I am pleased that China and the UK share the consensus that protectionism is not the solution, as it is retrogressive, goes against market rules and serves the long-term interest of neither side.  

Both sides believe that there should be closer dialogue and co-operation between our governments. Working with, rather than against, each other is the only way leading to a solution.  

Overcapacity in the steel industry is a global problem. It therefore calls for a global solution with stronger communication and co-operation among all steelmakers worldwide, who have the joint responsibility to uphold the order of steel trade and promote the sound development of the global steel industry.  

For China and the UK, 2016 is the opening year of the "Golden Era", in which dialogue, co-operation, mutual benefit and common development constitute the prevailing mainstream.  

In September, world leaders will gather in Hangzhou in China for the G20 Summit, which will focus on ways to withstand the global downward pressure, to find innovative growth models and to enhance international trade and investment.  

It is my hope and belief that China and the UK will work together to strengthen dialogue, break through the current difficulties and create a sustainable future for the steel industries of both countries.    Chinese Ambassador to the UK, Liu Xiaoming, publishes an article on the Daily Telegraph on Monday calling for the two countries to join hands and solve the current steel crisis. The following is the full text of the writing.  

Recently, the UK`s steel industry has been dogged by news of closures or sell-offs, with thousands of jobs at risk.  

This is a sad story: the pioneer of the modern steel industry - once the world`s factory, churning out almost half of global steel production in the latter half of the 19th century - is shrinking and bogged down in difficulties.  

However, it is regrettable that some people in Britain blame China for what is happening in the British steel industry and accuse China of "dumping" steels in Britain and pricing local companies out of the steel market.  

Making China the "scapegoat" only misleads the public and contributes nothing to the solution of the problem.  

As Chinese Ambassador, I believe it is my duty to share with the British public what I see as the multiple reasons behind the sluggishness in Britain`s steel industry.  

First of all, the shrinking steel sector tallies with the general trend in advanced economies where traditional manufacturing has been replaced by a modern services and financial sector. Sheffield`s transformation from a steel-making city to a sport and education hub is a case in point.  

Second, in the post-financial crisis era, recovery stays weak and demand remains scarce in most of the economies. Steel overcapacity thus becomes an acute issue worldwide and steelmakers, wherever they are, face similar difficulties. The UK is not alone. Steel companies in Europe, China and beyond are all trapped in the same predicament.  

Third, the price of steel production, including energy, labour and environmental costs, is rather high here in the UK. In face of fierce global competition, British companies in general are less competitive and less profitable in the field of ordinary and low-end steel production.  

Steel imported from China, amounts of which are very limited, has little to do with the predicament of the UK`s steel industry. In both volume and value, steel from China makes up only a fraction of the UK`s total steel imports.  

In 2015, for example, of the UK`s 6.66m tons of imports, only 11pc, or 760,000 tons, were from China. If put in value, that was $457m, only 7.6pc of the $5.98bn total.  

Moreover, steel products from China are mostly low value-added, such as ordinary steel rods and plates, which Britain no longer makes and would have to import from other countries anyway. 

Therefore, imports from China have no impact upon the British steel market. On the contrary, by importing steels from China, the auto, machinery, construction and other British industries have effectively lowered their costs and increased their profit margin. And imports from China are not "dumping", as some claim. The Chinese steel manufacturers have followed market rules strictly when exporting to Britain. 

Like their British counterparts, steelmakers in China are also in difficulty.  

But unlike in Britain, the situation in China is even more serious and challenging. Over the past three years, China has reduced steel capacity by 90m tons. In 2015, for the first time in nearly 30 years, China`s crude steel production fell by 2.3pc year on year. In the coming five years, China is going to cut its crude steel capacity by 100m-150m tons.  

This new round of reductions will result in several million lay-offs and relocations of steelworkers, far outnumbering those in the UK.  

So, both China and the UK have huge challenges on our way ahead - to reform and revitalise our respective steel sectors, and to provide help and support to those workers who might lose their jobs. 

The Chinese and UK governments have maintained close contact on the steel issue. In late February, the China-UK Joint Economic and Trade Commission had a special discussion on this matter.  

Over the weekend, during Foreign Secretary Philip Hammond`s visit to China, the two governments had an in-depth exchange of views over the steel issue.  

Here in the UK, I have spoken on many occasions and shared China`s position with British people from different sectors of industry.  

I am pleased that China and the UK share the consensus that protectionism is not the solution, as it is retrogressive, goes against market rules and serves the long-term interest of neither side.  

Both sides believe that there should be closer dialogue and co-operation between our governments. Working with, rather than against, each other is the only way leading to a solution.  

Overcapacity in the steel industry is a global problem. It therefore calls for a global solution with stronger communication and co-operation among all steelmakers worldwide, who have the joint responsibility to uphold the order of steel trade and promote the sound development of the global steel industry.  

For China and the UK, 2016 is the opening year of the "Golden Era", in which dialogue, co-operation, mutual benefit and common development constitute the prevailing mainstream.  

In September, world leaders will gather in Hangzhou in China for the G20 Summit, which will focus on ways to withstand the global downward pressure, to find innovative growth models and to enhance international trade and investment.  

It is my hope and belief that China and the UK will work together to strengthen dialogue, break through the current difficulties and create a sustainable future for the steel industries of both countries. 

Liu Xiaoming is the Chinese Ambassador to the UK.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2016 will be held at Meijiang Convention and Exhibition Center in Tianjin on September 22nd -25th, 2016. We invite you to join the event and to celebrate the 18th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2016, please visit: www.chinaminingtj.org.

China to open up iron ore futures to foreign investors

Source: www.chinamining.org         Citation: Reuters       Date: April 11, 2016

China is planning to open up the world`s most liquid iron ore futures to overseas investors, an official with the Dalian Commodity Exchange said on Friday, a move that would increase China`s sway over pricing as the world`s top iron ore consumer.  

The Dalian exchange is applying for approval from the China Securities Regulatory Commission to allow offshore investors to directly trade in the raw material, said Jing Mingyi, a manager with the exchange`s industrial products department.  

"We are actively working on it and hope to finish the relevant work regarding the trading system, connection with banks, deposit centre and futures firms," Jing told an industry conference.  

China has banned investors abroad from directly trading local commodity futures unless they set up a local unit in China.  

Dalian iron ore futures have become a benchmark for Chinese steelmakers and iron ore traders to assess prices for ore delivered to China.  

They have also attracted large capital flows from Chinese commodities funds. The iron ore contract surged as much as 19.5 per cent in a day in March amid a rally in prices. The volatility prompted the Dalian Exchange to enact measures to curb the sharp movements in prices.  

The most actively traded September contract on the Dalian Exchange was down 0.1 per cent on Friday at 377 yuan (S$78.78) a tonne.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2016 will be held at Meijiang Convention and Exhibition Center in Tianjin on September 22nd -25th, 2016. We invite you to join the event and to celebrate the 18th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2016, please visit: www.chinaminingtj.org.

China sets energy use target for 2016

Source: www.chinamining.org         Citation: Xinhua   Date: April 05, 2016

China aims to keep total energy consumption at around 4.34 billion tonnes of standard-coal equivalent in 2016, with non-fossil fuel consumption rising to 13 percent, the National Energy Administration said Friday.  

Gas consumption will account for 6.3 percent of total energy consumption this year, and the proportion of coal consumption will fall below 63 percent, according to a guideline issued by the administration.  

On the supply side, the country is expected to produce 3.6 billion tonnes of standard coal equivalent in 2016, with crude output reaching 200 million tonnes and gas output standing at 144 billion cubic meters.  

The country aims to reduce energy consumption per unit of gross domestic product by at least 3.4 percent year on year in 2016, according to the guideline.  

The administration called for efforts to promote clean energy and emission reductions, further optimize the country`s energy structure and strengthen international energy cooperation.  

China plans to invest 30 billion yuan ($4.62 billion dollars) in recharging-infrastructure construction in 2016 to promote the use of electric vehicles, the guideline said.  

The country will build 2,000 charging stations, 100,000 public charging posts and 860,000 private charging posts in 2016. 

China will also kick off a new round of rural electric power grid upgrades to improve rural residents` lives and bolster the country`s economy, according to the guideline.  

China`s energy consumption rose 0.9 percent year on year to 4.3 billion tonnes of standard coal equivalent in 2015. 

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2016 will be held at Meijiang Convention and Exhibition Center in Tianjin on September 22nd -25th, 2016. We invite you to join the event and to celebrate the 18th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2016, please visit: www.chinaminingtj.org.

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